The South African Reserve Bank Sarb opted not to cut the repo rate on Thursday after giving consumers an early Christmas present in November when it lowered the rate by 25 basis points to 6.75.
This time, the bank was more cautious after the start of 2026 followed the same pattern of geopolitical risks as in 2025.
Jee-A van der Linde, senior economist at Oxford Economics Africa, says they expected todays repo rate decision to be a close call. The hawks ultimately prevailed, as the Sarb governor struck a cautious tone, sceptical of global economic trends but more receptive to favourable dynamics at home.
